So we have a pre-FOMC party whipping up all across US and global markets, including commodities and precious metals. So what does Doctor Copper have to say about this?
Doc says “I held support… whee… Party on Garth!”
Well that’s a good thing because as we’ve noted already, it was very key support for it to hold at 2.50 to 2.60. The bounce is on and while RSI is getting a bit peppy, MACD is good and constructive. But… this is a daily chart (click for larger, clearer view) and there is much work left to do before Doc writes a positive – and/or inflationary – prescription.
Remember, it’s not out of the woods and into the next big inflation trade until $3/lb. gets taken out. Before that there are two areas of resistance, the SMA 50 and the SMA 200 to take out. Like I said, there’s work to do.
Here is the bigger picture of an ugly pattern, a support hold and a lot of traffic overhead.
Here is an even bigger picture to consider. Even if it were to lose support during this deflationary squall, a future cyclical inflationary party could come from the 2.30s or so.
No predictions by me on any of the above. Just following the breadcrumbs laid out by this and a host of other indicators.
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